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Dangote Group, NNPC Finally Reach an Enhanced Gas Supply Deal

Dangote Industries Limited (DIL) has signed an expanded gas supply agreement with the Nigerian National Petroleum Company Limited (NNPCL) to guarantee adequate energy for its ongoing expansion projects.

The deal involves three Dangote subsidiaries—Dangote Petroleum Refinery, Dangote Fertiliser Plant, and Dangote Cement Plc—scaling up their Gas Sales and Purchase Agreements (GSPA) with NNPC subsidiaries, Nigerian Gas Marketing Limited and NNPC Gas Infrastructure Company Limited (NGIC).

The agreement was formalised at the unveiling of the NNPC Gas Master Plan (GMP) 2026, held at the NNPC Towers in Abuja over the weekend.

The enhanced supply deal is expected to support Dangote Group’s Vision 2030, boosting output and ensuring cleaner energy supply.

Managing Director of Dangote Petroleum Refinery, David Bird, signed on behalf of the refinery. Arvid Pathak, Group Managing Director of Dangote Cement Plc, signed for the cement company, while Mustapha Matawalle represented Dangote Fertiliser FZE.

Bird described the agreement as a bold step toward expansion.

“This marks a critical milestone in our expansion drive and a proactive measure to lock in vast energy requirements for the anticipated increase in production capacity,” he said.

Pathak noted that the deal aligns with Dangote Cement’s strategic objectives.

“The agreement guarantees the gas required to support the drive towards CNG adoption as auto gas and to meet increasing demand as local production capacities expand,” he explained.

Dangote Fertiliser FZE added that the agreement would directly support its fertiliser capacity expansion projects, given that fertiliser production relies heavily on natural gas.

Gas Master Plan 2026

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the GMP 2026 as a deliberate shift from policy articulation to disciplined execution.

“Today’s launch is not merely the unveiling of a document; it represents a deliberate shift towards a more integrated, commercially driven, and execution-focused gas sector, aligned with Nigeria’s development aspirations,” Ekpo said.

He stressed that Nigeria, with one of Africa’s largest proven gas reserves, must translate its potential into measurable outcomes.

“Our challenge has never been potential, but translation: translating resources into reliable supply, infrastructure into value, and policy into measurable outcomes for our economy and our people,” he added.

Ekpo noted that the plan’s focus on supply reliability, infrastructure expansion, domestic and export market flexibility, and strategic partnerships aligns with the Federal Government’s Decade of Gas Initiative, positioning natural gas as the backbone of Nigeria’s energy security and industrialization.

Unlocking Nigeria’s Gas Potential

NNPCL Group Chief Executive Officer, Bashir Ojulari, described the GMP 2026 as a bold roadmap designed to unlock Nigeria’s immense gas potential and elevate the country into a globally competitive gas hub.

Ojulari highlighted Nigeria’s 210 trillion cubic feet (Tcf) of proven gas reserves, with an upside potential of up to 600 Tcf, making it one of the world’s most significant hydrocarbon basins.

“The Plan is structured not just to deliver—but to exceed—the Presidential mandate of increasing national gas production to 10 billion cubic feet per day by 2027 and 12 billion cubic feet per day by 2030, while catalysing over $60 billion in new investments across the oil and gas value chain by 2030,” he said.

He explained that the plan prioritizes cost optimization, operational excellence, and systematic advancement of resources from 3P to bankable 2P reserves. It also strengthens gas supply to power generation, CNG, LPG, Mini-LNG, and critical industrial off-takers.

Ojulari reaffirmed his commitment as chief sponsor of the initiative, stressing that NNPC has adopted a collaborative, investor-centric approach in shaping the NGMP 2026, with strong alignment to industry stakeholders and investors.

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